Mack and Myer, LLP, a law firm, is considering the replacement of its old accounting system with new software that should save $10,000 per year in net cash operating costs. The old system has zero disposal value, but it could be used for the next 5 years. The estimated useful life of the new software is 5 years with zero salvage value, and it will cost $40,000. The required rate of return is 14%. (Click the icon to view the present value factor table.) Read the reguirements Requirement 1. What is the payback period? Select the formula and then enter the amounts to calculate the payback period. EEB Click the icon to view the present value annuity factor table.) -Payback period years Requirement 2. Compute the NPV (net present value). (Enter the present value factor to four decimal places."XXXXX." Round dollar amounts the nearest whole number. Use a minus sign or parentheses for a negative net present value.) Present value of Ordinary Annuity of $1 at 5 years, 14% Annual Cash Total Present Inflow Value Net present value Present value of annuity of equal annual net cash inflows per year Less: Initial investment Net present value Requirement 3a. Management is unsure about the useful life. What would be the NPV if the useful life were 3 years instead of 5? (Enter the present value factor to four decimal places, "XXxXX Round dollar amounts the nearest whole number. Use a minus sign or parentheses for a negative net present value.) Present value of Ordinary Annuity of $1 at 3 years, 14% Annual Cash Total Present Inflow Value Net present value Present value of annuity of equal annual net cash inflows per year Less: Initial investment Net present value Requirement 3b. Management is unsure about the useful life. What would be the NPV if the useful life were 10 years instead of 5? (Enter the present value factor to four decimal places, "XXXXX Round dollar amounts the nearest whole number. Use a minus sign or parentheses for a negative net present value.) Present value of Ordinary Annuity of $1 at 10 years, 14% Annual Cash Total Present Inflow alue Net present value Present value of annuity of equal annual nel cash inflows per year Less: Initial investment Net present value Requirement 4. Suppose the life will be 5 years, but the savings will be $8,000 per year instead of $10,000. What would be the NPV? (Enter the present value factor to four decimal places, "x.XXXX." Round dollar amounts the nearest whole number. Use a minus sign or parentheses for a negative net present value.) Present value of Ordinary Annuity of $1 at 5 years, 14% Annual Cash Total Present Inflow Value Net present value Present value of annuity of equal annual net cash inflows per year Less: Initial investment Net present value Requirement 5, Suppose the annual savings will be $9.000 for 4 years. What would be the NPV2 Enter the present value factor to four decimal places. "XXXX." Round dollar amounts the nearest whole number. Use a minus sign or parentheses for a negative net present value.) Present value of Ordinary Annuity of $1 Annual Cash Total Present